1. Field of the Invention
The present invention generally relates to methods and systems for conducting secure purchase and payment transactions, and more particularly to a method, system and computer program product for conducting secure purchase and payment transactions using a mobile phone.
2. Discussion of the Background
Customers in today's world have unprecedented access to retailers and merchants selling goods and/or services of all types in stores, through vendors and vending machines, restaurants and the internet. Beyond the traditional shopping practice of buying goods and services in ones own neighborhood, town, city, and country, access to foreign goods and services is made possible through travel and/or the internet.
Once customers select their goods, they have several options to pay the retailer/merchant with. While cash is still “king,” customers have other payment options such as using credit cards, debit cards and payment service providers that act on behalf of customers as intermediaries between financial institutions and retailers to try and protect customer's financial and personal information. Other payment options also include, pre-paid credit/debit cards, stored value cards, bank checks, bank transfers, travelers checks, money order, demand drafts, money transfer using a third independent financial entity, E-mail payments, and mobile wallet applications that act as intermediaries or interfaces between a customer's financial institution (typically a bank or a credit card company) and the retailer/merchant. Certain computer based financial services software programs also provide transaction payment features.
However, all these payment options have their merits and demerits and various complexities. Customers are still weary about giving their credit card and personal information to pay for purchases on the internet, even at stores, restaurants and vending machines as fraud and identity theft cases have occurred and are on the rise. Given the surge in identity theft, one can't blame customers for fearing the worst. In addition, use of the other financial transaction instruments may be costly or sheer complex cumbersome.
Accordingly, customers are constantly looking to simplify their life and reduce complexities in any way possible as long as it doesn't jeopardize their personal or financial security. Given that security, fraud and identity theft are major concerns, it is imperative that customers are protected. Customers are also weary of unreasonable hidden costs that are additionally charged by credit cards, mobile wallets and other financial instruments that are above and beyond what the retailer is already charging.
Conventional systems of payment and methods using mobile phones have limitations, including requiring downloading of complex software, need to use hi-tech mobile phones, need for additional security codes, hidden costs, and additional charges by the customer's bank or credit card company. In addition, such complex mobile phone payment systems and other payment methods are also limited in their availability and usage for the world's population at large that purchases goods and services. The estimate for the world's population stands at 6.6 billion in 2008. Less than 30% of the world's population has credit cards. However, almost 70% of the world's population has a mobile phone and an active mobile account and a robust system and method to leverage this market has yet to be developed.